Stanford’s $7 billion investment empire crumbled two years ago today when the SEC accused him in a civil lawsuit of perpetuating a massive fraud. In his lawsuit, Stanford contends that federal agents used illegal tactics to prosecute him, including the civil action filed by the SEC, which led to the appointment of a receiver.

For investors, the big question isn’t whether the SEC’s actions were right, but why they took so long – and why the agency repeatedly ignored warnings about Stanford and allowed the scheme to balloon.

In other events in this backwards universe, former Stanford brokers filed a counterclaim against the court-appointed receiver accusing him of mismanaging the investment firm after he took control. The brokers, whom the receiver had sued in 2009, claim they had no idea that the certificates of deposits they peddled on behalf of Stanford’s Antiguan bank were bogus.

Which means at the very least the brokers either didn’t deserve to be managing other people’s money, or they were willfully ignorant of the sham they were perpetuating. Either way, their actions drew thousands into one of the biggest investment schemes in U.S. history.

Can you blame the guy. First he is arrested then then the gov”t gets him addicted to dope, then he gains a bunch of weight, then his daughter gets kicked out of her house, and now I hear his name was put on the do not serve list at House of Pies

The government should stop wasting everyone’s time, just tie him up in the middle of the city and let every single one of his investors come and shoot him, hit him with bats, whatever they want to do to his dead body. See Benito Mussolini.

If it wasn’t so serious, this could actually be humorous – I could envision a sitcom they could call ‘Stanford & Co.’ that centers around a run-down junk bond dealer and his missteps along life’s merry way.

This is a perfect example, along with Skilling, as to what is wrong with our country. Let the criminals have more rights than the victims. If they have any money to file all these suits, why aren’t they being forced to give it to the people they robbed.

1. The investors were happy as clams until the SEC stepped in and appointed a receiver who liquidated the companies assets for pennies on the dollar. There were no complaints from investors.

2. Every major bank in this country was insolvent at that time, but were bailed out by the US taxpayers.

3. Why would someone who is allegedly running a Ponzi scheme invest so heavily in the airline industry(Caribbean Sun & Caribbean Star), real estate developments, and other entrepreneurial activities??

4. The Antiguan real estate holdings and other assets were seized by the Antiguan government, who just happened to owe Stanford a substantial amount of money. The Antiguan government does not have to repay the loan to the investors, or turn over the assets to the investors, or turn over the funds that are still in Stanford accounts on the island. Why doesn’t someone investigate THAT?

5. The receiver has purposely postponed or delayed the sale of certain assets in order to keep billing the estate for his fees.

6. What is Stanford is acquitted (if they don’t kill him or make him disappear/go crazy/etc. first)? Who will make restitution to the investors, the employees, and Stanford himself?

7. The medications that Stanford is supposedly addicted to were forced upon him by the prison infirmary.

There are so many things wrong with the way this case has been handled so far. I doubt it will ever go to trial, because the SEC and the govt. know that they will have a big MESS on their hands if they cannot get a conviction. But, the job of the press is to convince people that he is guilty, so there will be a convenient scapegoat for the looting of this company. They can make him disappear anytime. It will be oh so convenient. Most people commenting on this story only know what they have read in the Chronicle or other newspapers and thus have only seen a highly distorted and selective angle. There is so much more to this story than has been reported, but I guess no one is interested in finding the truth. Just regurgitate the government’s propaganda.

A few other things you won’t read in the Chronicle’s biased reporting on this story:

-The investors are suing the receiver.

-Where is the “informant” Jim Davis? Walking around Scot-free. Were his assets seized? Where is the 1 billion dollars that he supposedly was going to return? What about his investments & businesses in Tupelo? Were they seized? What about his two sons who were employed by the company–what happened to their assets?

-Where is Andrea Stoelker?

-What happened to the Antiguan receivers and why are they no longer involved?

-The employees should also sue the SEC for destroying their careers without so much as a trial.

The 1000 employees who were laid off without severance should also sue. When this bogus case is thrown out of court, I will be suing. My salary was $98K per year and I planned to spend at least 15-20 years there, basically to retire from Stanford. I’m thinking the SEC owes me 2.5 million.

Don’t you think those clams might’ve sensed a wee bit was amiss if they’d known details about the “Tier 3″ portfolio. And the valuations booked for carribean real estate holdings. Or the Billion+ loan to himself, etc. Or had known about RAS close relationship with King…..

The government has destroyed a company, thousands of innocent employees livelihoods, many individuals that depended upon Stanford Financial to provide shelter,food,clothing & educations for their children. I have firsthand knowledge of Stanford’s operations and am certain that but for the top 3 people in that company, those employees were all hard working, dedicated individuals who didn’t deserve to have their lives ruined because of “the greedy 3″.

I worked for the broker dealer in Houston and although I had no contact with the bank and never was involved with any of the cd’s I know for a fact there was unlawful activity going on inside the Stanford organization. When I became uncomfortable and I refused to do things I reasonably believed to be unlawful I was fired and Allen’s goon squands try to ruin my career. There is a lot that went on in the organization that has never even been brought up by the SEC or the DOJ. To date, FINRA has yet to take any action against any employee at SGC. Yes, there is much more top the story that has been reported and I wish it would get reported.

Allen knew he wasn’t related to Leland Stanford by what’s a little fraudulent misrepresentation when you are trying to convince people you are something other than a scam artist? Tracing the company roots back to 1939? Eh, another fraud. Knighted by Prince Andrew? Eh, when you have told enough little lies, what is another? $50 billion under managment “or advisement”? Hey, when you are good at lying to people, you might as well do it often.

Allen wasn’t the person he represented himself to be. He was an egomanical liar. Inflated returns in the SAS portfolios? Do you really think that was a surprise to anyone? Telling clients the CD’s were insured? Again, why let the truth get in the way?

The organization was corrupt and anyone who was uncomfortable with the truth when it became obvious was fired and their reeputation smeared by Allen’s goon squad.

Yes, there is a lot more than has been reported. I hope it gets reported. Allen, in my opinion, deserved to rot in jail. He should be rotting wit a number of his former cronies but sadly, they have escaped responsibility for their part in the whole mess.

If the SEC had been doing their job, that we investers depended upon them to do, this never would have happened. He took my husband’s entire IRA and some of my life savings and gave us a CD in Antigua…….I have no sympathy at all for his discomfort or his adiction to anti anxiety drugs. If he is suffering it could not be greater than those of us that he robbed of a comfortable retirement. i think that the media should stop reporting his whinings, who of us cares????????